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Disclosure announcement transmitted by euro adhoc. The issuer is
responsible for the content of this announcement.
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Berlin, July 31, 2003 - Schering AG, Germany (FSE: SCH, NYSE: SHR)
announced today that net sales of the Schering AG Group were EUR2.338
billion, 8% less compared to the previous year. The further
strengthening of the euro against the U.S. dollar and the yen in the
second quarter of 2003 had a negative impact on the development of
net sales. Adjusted for currency effects, net sales increased by 3%
in the first six months of 2003. Operating profit was 6% down on the
figure for the first six months of 2002.
"In fiscal year 2003, we anticipate a solid growth in net sales for
the Schering AG Group. Due to the negative impact of exchange rates
we anticipate that earnings in the full year 2003 will be below
previous years level. Because of the unfavorable exchange rate
environment as well as further burdens through national cost
containment measures especially in Germany, we will take further
steps to align our cost structure. This will result in a reduction of
around 300 jobs in Germany already this year", said Dr. Hubertus
Erlen, CEO and Chairman of the Executive Board of Schering AG. "Our
long-term strategic goals are not affected by this situation. The
competitiveness of our existing products as well as the many
promising drug candidates will contribute to realize these targets."
Particularly net sales of Yasmin® (+120%), Mirena® (+26%) and
Magnevist® (+6%) increased after adjusting for currency effects.
Sales growth of Betaferon® was burdened by non-recurring effects in
the second quarter. For the full year, net sales of Betaferon® are
expected to grow in the double-digit range in local currencies.
Negative exchange-rate effects on operating profit were partially
offset by profits from currency hedges as well as a reduction of
operating costs. Excluding one-time effects in the previous year, in
particular the sale of our interest in Aventis CropScience, net
profit decreased by 10% from EUR279m to EUR250m.
Half year 2003 Basic figures (year-on-year):
- Net sales: EUR 2,338 million; +3% (after adjusting for currency
effects); -8% (overall)
- Gross profit: EUR 1,760 million; -8%
- R&D costs: EUR 435 million; -3%
- Operating profit: EUR 374 million; -6%
- Net profit: EUR 250 million; -10%*
- EPS basic: EUR 1.28; -9%*
- Cash flow: EUR 382 million; +3%
- Number of employees: 26,628 (average); +3%
*percentage change adjusted for one-time effects, in particular sale
of the interest in Aventis CropScience
Second Quarter 2003 Basic figures (year-on-year):
- Net sales: EUR 1,179 million; +1% (after adjusting for currency
effects); -9% (overall)
- Gross profit: EUR 874 million; -10%
- R&D costs: EUR 219 million; -4%
- Operating profit: EUR 163 million; -12%
- Net profit: EUR 123 million; -11%*
- EPS basic: EUR 0.63; -10%*
- Cash flow: EUR 187 million; +10%
- Number of employees: 26,628 (average first half year 2003); +3%
*percentage change adjusted for one-time effects, in particular sale
of the interest in Aventis CropScience
An analyst conference call will be held and audio webcast on our
website www.schering.de today, July 31, 2003, at 10.30 hours CET.
Schering will publish its Interim Report for the first nine months on
October 27, 2003.
end of announcement euro adhoc 31.07.2003
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Further inquiry note:
Oliver Renner
Branche: Pharmaceuticals
ISIN: DE0007172009
WKN: 717200
Index: CDAX, DAX, HDAX, Prime All Share, Prime Standard
Börsen: Niedersächsische Börse zu Hannover / official dealing
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